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Mechanism of the Dispute Settlement System

Published online by Cambridge University Press:  04 November 2017

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Summary

Advisory Mechanism

ASEAN Consultation to Solve Trade and Investment Issues (ACT)

  • (i) The ACT is adapted from the EU SOLVIT mechanism. It is a network of government agencies (one from each country) to allow the private sector to cut through red tape and achieve speedy resolution of operational problems encountered, thus helping to create a pro-business environment in ASEAN.

  • (ii) Private individuals and businesses faced with operational problems related to countries’ ASEAN commitments, either at home or in other ASEAN countries, can highlight these problems to the ACT in their country (Host ACT). For problems encountered within the home country, the Host ACT will direct the problem to the appropriate government agencies, and ensure that a proposed solution is sent to the individuals/businesses within 30 calendar days.

  • (iii) For problems encountered in other ASEAN countries, the Host ACT will forward the problem to the other countries’ ACT (Lead ACT). The Lead ACT will be responsible for directing the problem to the appropriate government agencies in its country, and ensuring that a proposed solution is sent to the individuals/ businesses via the Host ACT within 30 calendar days. To minimize delays, communication between Host and Lead ACTs should be via electronic means, for instance an online database accessible to all member countries.

  • (iv) If the proposed solution does not resolve the problem highlighted, the private individuals/businesses can request that their government raise this issue to the other dispute settlement mechanisms described below.

  • ASEAN Legal Unit

  • (i) The ASEAN Legal Unit will be staffed by qualified lawyers specialising in trade laws employed by the ASEAN Secretariat. The unit will offer legal interpretation/ advice on potential trade dispute issues upon request from countries. The advice is purely advisory and non-binding in nature.

  • (ii) The ASEAN Legal Unit would play a useful role in screening out issues that are operational/technical in nature which could be resolved through bilateral consultations, rather than being surfaced to the ASEAN Compliance Monitoring Body or the Enhanced ASEAN Dispute Settlement Mechanism. The ASEAN Legal Unit will also be responsible for providing legal advice and secretariat support to the ASEAN Compliance Monitoring Body and enhanced ASEAN Dispute Settlement Mechanism.

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    Publisher: ISEAS–Yusof Ishak Institute
    Print publication year: 2004

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